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Updated: Sep 04, 2025
Q & A: 344 Questions and Answers
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1. The method based on making comparisons between the subject stock and transactions in guideline publicly traded stocks is called:
A) Investment Value
B) Fair Market Value
C) Control Value
D) Fair Value
2. If Paola Pizza Parlors stock started the year at $10 per share, paid $0.50 in cash dividends during the year, and ended the year ay $11.50 per share, then the total investment yield or rate of return for the year would be:
A) 0.50
B) 0.10
C) 0.20
D) 0.30
3. The most common forms of redemption provisions found in privately held companies are as follows. Which of the following is NOT out of the common forms of redemption provisions?
A) Future redemption by the
issuing company is mandatory and based on a specific redemption schedule.
B) Future issues have sinking funds provisions similar to vehicle by which bonds are retired at intervals up to their maturity dates and are referred to as sinking fund preferred.
C) The entire issue is redeemable at the option of the issuing corporation at a specified price over a designated time period. These types of issue are commonly referred to as callable.
D) The entire issue is redeemable at the option of the issuing corporations at a changing price contingent upon a certain event.
4. In the unique case where the expected economic income is a net
level amount in perpetuity, the discount rate is equal to the capitalization rate.
A) False
B) True
5. The analyst will begin which process of revaluing each of the asset accounts and, if necessary, each of the liability accounts?
A) Business process
B) Quantitative process
C) Qualitative process
D) Accounting process
Solutions:
Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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